Microfinance and Tsunami Recovery
Why MFIs and Disasters?



A lot of attention was paid to microfinance as a key tool for communities to recover from the devastating impacts of the tsunami.

The survey of MFIs clearly pointed at three key reasons for the interest that microfinance generated among the international organizations -

  1. disbursement of microfinance funds to the affected communities was quick and flexible;
  2. microfinance was highly localized and was closest to the communities, and
  3. microfinance activities was already in place and being used among the most vulnerable populations in the affected countries.

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Hari Srinivas - hsrinivas@gdrc.org
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